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Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment information

11. Segment Information

The Company has determined its reportable segments based on the Company’s method of internal reporting, which disaggregates its retail business by branch and its proprietary and investment banking businesses by product. The Company’s segments are: Private Client which includes commission and fee income earned on client transactions, net interest earnings on client margin loans and cash balances, stock loan activities and financing activities; Capital Markets which includes investment banking, market-making activities in over-the-counter equities, institutional trading in both fixed income and equities, structured assets transactions, bond trading, trading in mortgage-backed securities, corporate underwriting activities, public finance activities, syndicate participation as well as the Company’s operations in the United Kingdom, Hong Kong, and Israel; and Asset Management which includes fees from money market funds and the investment management services of Oppenheimer Asset Management Inc. and Oppenheimer’s asset management divisions employing various programs to professionally manage client assets either in individual accounts or in funds. The Company evaluates the performance of its segments and allocates resources to them based upon profitability. The Company has allocated all revenue and expenses to its segments and has eliminated the “Other” category as these are now allocated by the Chief Executive Officer and Chief Financial Officer in their analysis. Previously reported segment information has been revised to reflect this change.

The table below presents information about the reported revenue and profit (loss) before income taxes of the Company for the three months and six months ended June 30, 2012 and 2011. Asset information by reportable segment is not reported, since the Company does not produce such information for internal use.

Expressed in thousands of dollars.

 

                                 
   

Three months ended

June 30,

    

Six months ended

June 30,

  
    2012     2011     2012     2011  

Revenue:

                                

Private Client (1)

   $ 128,631     $ 136,116     $ 270,459     $ 284,963  

Capital Markets

     82,547       88,893       157,350       174,978  

Asset Management (1)

     21,967       19,509       43,550       37,994  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 233,145     $ 244,518     $ 471,359     $ 497,935  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Profit (loss) before income taxes:

                                

Private Client (1)

   $ 348     $ 4,302     $ 10,098     $ 14,340  

Capital Markets

     2,852       (7,161 )      (18,691 )      (11,947 ) 

Asset Management (1)

     4,639       4,563       9,943       9,140  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 7,839     $ 1,704     $ 1,350     $ 11,533  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Asset management revenue is allocated 22.5% to the Asset Management segment and 77.5% to the Private Client segment.

Revenue, classified by the major geographic areas in which it was earned for the three and six months ended June 30, 2012 and 2011, was as follows:

Expressed in thousands of dollars.

 

                                 
   

Three months ended

June 30,

    

Six months ended

June 30,

  
    2012     2011     2012     2011  

United States

   $ 222,478     $ 232,272     $ 448,113     $ 471,562  

Europe / Middle East

     7,258       6,554       4,265       14,787  

Asia

     1,620       3,246       15,534       6,385  

South America

     1,789       2,446       3,447       5,201  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 233,145     $ 244,518     $ 471,359     $ 497,935